DeFi
Cardano’s next upgrade makes it more like a DAO – DL News
- Cardano’s Chang hard fork is imminent.
- The hard fork will introduce DAO-style governance for Cardano.
Cardano, That of Charles Hoskinson The $15 billion blockchain is moving toward a transition toward decentralized ownership, similar to the structure of a decentralized autonomous organization, or DAO, that is popular among DeFi protocols.
The development of Cardano, established in 2017, has been under the sole leadership of Hoskinson’s blockchain engineering firm, Input Output Global, as well as the Cardano Foundation and EMURGO, the official business arm of Cardano.
This will change with the Chang hard fork planned for this month.
Hard forks occur when developers execute major changes to a blockchain’s programming, resulting in a new version of the network that is not backwards compatible with the previous network.
Blockchains like Bitcoin and Ethereum have also completed hard forks in the past that triggered massive changes in their networks.
Ethereum most recent hard fork in 2022 changed the network of a Proof of work chain with minors for Proof of Stake.
Cardano’s Chang hard fork can happen once 70% of the blockchain’s validators are upgraded to the latest version of the network’s node software.
Instead of centralized entities managing Cardano, blockchain governance will be community-driven once the Chang hard fork occurs, Hoskinson said on X this week.
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With Chang, ADA token holders will have governance rights and be able to vote on changes to Cardano. ADA is the native token of Cardano.
The upgrade will also introduce other DAO-like elements to Cardano, such as delegation of voting power, project team budgets, and a community-managed treasury.
Chang’s hard fork and resulting pivot toward a decentralized governance structure is called the Voltaire Era and is the fifth step in Cardano’s roadmap. The previous two stages – Goguen and Basho – introduced smart contract and scalability features to the blockchain.
Despite these new features, Cardano’s DeFi Marketplace struggled to take off and was overshadowed by Solana and several layer 2 Ethereum networks.
Cardano losing ground to more dynamic crypto projects is reflected in the value of its token.
ADA, once the third-largest crypto by market value during the 2021 bull market, fell to 11th place, overtaken by popular memecoins Dogecoin and Shiba Inu.
Osato Avan-Nomayo is our DeFi correspondent based in Nigeria. He covers DeFi and technology. To share tips or story information, please contact him at osato@dlnews.com.